Domino's Q4 2024: Navigating Contradictions in Unit Growth and International Performance

These are the key contradictions discussed in Domino's latest 2024Q4 earnings call, specifically including: Unit Growth Expectations, International Market Performance, Loyalty Program Impact, and International Same Store Sales Expectations:



US Market Share Growth:
- Domino's Pizza grew US retail sales by 5.3% in 2024, with meaningful positive order count growth and increased same store sales growth in carryout business by 6.2%.
- The growth was driven by the "Hungry for MORE" strategy, focusing on renowned value and enhancing e-commerce platforms.

International Market Improvements:
- Domino's International showed 31 consecutive years of same store sales growth despite macroeconomic pressures.
- Growth was driven by value-driven marketing initiatives like Emergency Pizza promotions and increased delivery orders through aggregators.

Investment in Technology and Operations:
- Domino's introduced the DJ dough stretching machine, with over 1,600 machines rolled out across the US, increasing by 50% from the end of Q3.
- This was part of the company's focus on operational excellence, aiming to improve product consistency and delivery times.

Aggregator Platform Expansion:
- Domino's achieved 3% of sales through Uber Eats in 2024 and plans to further penetrate the aggregator channel in 2025.
- The expansion is expected to drive incremental sales opportunities, with a potential $1 billion in incremental revenue over time.